Here are some comments from a recent email from Gino Blefari, CEO of Intero Real Estate Services:
Real Estate Is This Summer’s Biggest Blockbuster for Buyers
Summer is almost here – typically a busy season for home sales. But, what about this year? Will high gas prices and the rising cost of just about everything else from inflation dampen a typically active time of year in real estate? We’re on shaky ground, but could there be a better market for buyers? I don’t think so.
- Home prices fell to 9-year low
- Pending home sales took a pretty steep dive in April.
- Sales of new homes increased in April, for the second straight month
- Inventory of previously owned homes remains high.
There are a ton of factors that can affect home sales – employment numbers, gas prices, the cost of goods and services, overall confidence in the economy, loan standards, interest rates. And also, there’s the local factor – meaning one market may be sailing along, while another is floundering. For example, in Santa Clara County home prices haven’t dropped as drastically as the rest of the nation, they are actually higher than the Dot-Com crash days of 2002. Santa Clara County’s home prices today are more similar to pricing in 2004, averaging at $684,000. So remember real estate is local and depending on your location sales could pick up as more buyers realize conditions can’t get much better.
Buyers this summer have the best of all worlds: Low interest rates literally shave thousands of dollars off the price of a home; high inventory levels offer a shopper’s paradise in terms of choice; inventory also puts downward pressure on prices; prices are at a new recession low; and nothing major has changed “yet” in lending regulations that would cause major issues.
Calling all home shoppers: This summer is the season of your real estate dreams. The fences are buckling under your weight, and the grass is much greener on the ownership side if you’re ready. Not all homes are going at fire sale prices, of course, but for buyers in most parts of the country it really doesn’t get any better than this.